Hong Kong is the easiest jurisdiction in Asia Pacific for accounting and tax compliance, and fourth-easiest globally - according to TMF Group's Financial Complexity Index 2018.

Hong Kong retains its position as the easiest jurisdiction in Asia Pacific for accounting and tax compliance, and fourth-easiest globally. The leading provider of global business and compliance services ranked 94 jurisdictions across Europe, the Middle East, Africa, Asia Pacific and the Americas; 1 being most complex through to 94 the least complex.

While Hong Kong came in at 91st, China is at number 1 taking the top spot in this year's Index. For a second year, the Cayman Islands came in at 94th as the least complex place for financial compliance. Commenting on Hong Kong's ranking, TMF Group's Regional Director for Asia Pacific, Paolo Tavolato said: "Hong Kong has a much simpler taxation system compared to other jurisdictions. There are only three direct taxes in the city – salaries tax, corporate income tax and property tax – and no sales tax and VAT.

"The system also has some special features. Taxes are only levied on a territorial basis, which means that only income arising in or derived from Hong Kong is taxable; worldwide income is not taxable, no matter what the residential status of the taxpayers is. "While Hong Kong is one of the least complex jurisdictions in the world for financial reporting, it still has some key regulatory requirements. For example, accounting records should be preserved for seven years and in case of non-compliance with bookkeeping requirements, directors are personally liable for a fine of HK$300,000. "When it comes to cross-border business success, knowing and understanding the local requirements for financial compliance can prove vital.

Hotline

All Rights Reserved. Leading Offshore Company Formation & Licensing Solutions.

One IBC Limited, One IBC CPA Limited ("Certified Public Accountants"), One IBC Asset Management Limited and One IBC Secretarial Limited, all companies Incorporated in the Hong Kong SAR with limited liability. One IBC Pte. Ltd ("Corporate Service Providers"), Incorporated in Republic of Singapore with limited liability.

Each member firm of One IBC network is legally separate and independent entities affiliated with One IBC Limited (“One IBC”), a Hong Kong entity. All rights reserved.